2014 - MAY18

Chinese Buyers Paying More?

There is currently very little evidence supporting this, in fact, research conducted by The University of Technology is rather the contrary, finding evidence that Chinese buyers are paying less in comparison for comparable homes.

The report released by the University titled Chinese Demand for Sydney Residential Property, analysed over 73,000 individual home sales over a decade, showing that Chinese buyers paid two per cent less on average over that 10 year period.

That represents a saving of $13,800 on the average price of $676,300 for the properties in the study.

The report also revealed other interesting data including a significant increase in the proportion of sales to Chinese buyers. In 2000 Chinese buyers made up 6.5 per cent of sales, doubling to 13 percent in 2010 and dropping to 10 percent in 2011.

Researches from the university they plan to conduct a more comprehensive study using the full sample of all Sydney home sales from 2000 to 2013, which will provide better insights into the overall size of the discount paid by Chinese buyers.

Auction Clearance Results

Sydney: 75%
Melbourne: 76%
Brisbane: 47%
Adelaide: 64%

(*Source APM)

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